Renewable Energy Solar Energy Wind Energy Geothermal Energy Bioenergy Hydropower
 

Energy Diversification: A National Security Imperative

By T.J. Buonomo, Former U.S. Military Intelligence Officer
February 4, 2010   |   38 Comments

Do you like this opinion & commentary?

Email   Bookmark Bookmark   Print   Feed   Share
 

The information and views expressed in this article are those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on its Web site and other publications.

38 Reader Comments
Comment
1 of 38
February 5, 2010
Those who write on 'imported oil' and the evils of fossil fuels need to consider the facts first.
The facts are:
-currently the largest crude oil suppliers to the US are Canada, Saudi Arabia, Mexico, Nigeria and Venezuela in that order.Canada and Mexico are trade partners in NAFTA.
-Saudi Arabia has a joint venture, Motiva, with Shell which at one time required that it supply 600,000 Barrels per day of crude oil to the JV
-PDVSA, the Venezuelan oil company, owns CITGO and supplies crude oil to its wholly owned company.
the United States processes 20,000,000 Bbls per day of crude oil of which approximately 10,000,000 Bbls/day is imported.
One point that appears to dominate the AGW alarmists doom and gloom scenarios is the almost total concern with replacing gasoline as a transportation fuel with something else, ethanol from any source, hydrogen and now "carbon-free electricity". This is supposed to insure energy independence from importing 'foreign' crude oil. Since less than 50% of a barrel of crude oil is turned into gasoline,44 to 48 percent, the remaining 50+percent provides refinery gas, propane, butane,aviation gasoline, jet fuel, kerosene, diesel fuel, home heating oil, lubricating oils /greases for both transportation and industrial applications, feed stocks for petrochemical, detergents, plastics and rubber industries, fuels for marine shipping, asphalts for our roads and highways and last but not least military specification petroleum products. Are those who oppose importing crude oil advocating importation of the more expensive finished products or simply shutting down the industrial base of the United States?
A carbon based petroleum free world appears bleak indeed.
to be continued
Comment
2 of 38
February 5, 2010
The United States would announce the following to achieve diversification:
-exploration and drilling for oil and natural gas would be allowed in and on all onshore and offshore lands and territories of the USA,
-coal to oil refineries, such as SASOL in South Africa, and shale oil recovery would be encouraged and allowed,
-building of nuclear (where adequate cooling water is available), coal and/or natural gas power plants would be accelerated,
-government support programs for ethanol would end

Those who oppose drilling for oil also oppose the use and development of coal, shale, dams. nuclear as energy sources, all of which would be provided by investments by corporations while preferring to place their hopes in investing tens of not hundreds of billions of dollars wrested from taxpayers or borrowed in the hopes that sometime in the future energy sources will be developed that will not only replace the today's energy sources but will keep up with increasing demand of the future. The ultimate source for the 'opposers', be it sun, wind, crops or waves is dependent on the fickle whims and fancies of mother nature an often brutal and unforgiving taskmaster. Both Newton and Einstein used a 'thought' idea to set up and think through a problem and there doesn't see to have been much thought given to to possible problems and unintended consequences of an all electric world when hurricanes, tornadoes, earthquakes, floods, droughts, hail, snow/ice storms wreck havoc on the power transmission systems.
What happens when snow and ice cover solar panels and high winds and icing conditions stop wind turbines from turning?
At least today gasoline and diesel powered emergency vehicles, fire, police, power company trucks from all over the US, ambulances and peoples' own vehicles were operational. How will the power companies,governments and individuals cope when such necessary vehicles are dependent on electric power and transmission lines are brought down by weather occurrences.
Comment
3 of 38
February 5, 2010
Continued
Or possibly an enemy EMP attack, as an ex-intelligence officer Mr.Buonomo should be very familiar with EMP, or a more likely a cyber attack as featured in the November 8th, 2009 60 Minutes segment:
Sabotaging the System
http://www.cbsnews.com/video/watch/?id=5578986n&tag=contentMain;cbsCarousel#comments
The future could be "The Day the Earth Stood Still" the original.
Comment
4 of 38
February 5, 2010
Patrick, I think many would argue the exact opposite -- in a more distributed system, the weather will only affect a small portion of systems. Sure, they may be impacted (as power lines already are), but the geographic impact would be much smaller.

While there are drawbacks with every type of energy, I think I'd feel safer knowing that I had a local supply of energy. Last year, we had a nasty, nasty ice storm here in New England. People around me were without power for over two weeks. I was able to have electricity and heat because of the solar PV system and a wood stove.

And with regard to your comment about renewables being beholden to mother nature -- yes, that's true. But grid operators, utilities and resource modeling companies already understand how to space projects out properly to capture the variability in weather and maximize output without lots of storage.

Does that mean there are no problems? Of course not. But the notion that we can't scale renewables because of resource variability is proving to be incorrect.

And finally, you talk about fossil energies as if we will always be able to keep getting them out of the ground. It takes a lot of energy and water to procure those resources, and the net energy we get from them continues to drop. At some point, it will take more energy to procure that oil and shale than we get from it....The net energy of RE is low compared to historic standards, but it's definitely increasing given how rapidly the technologies are evolving.
Comment
5 of 38
February 5, 2010
Mr.Lacey,
You have a stove that burns 'wood' ! Actually i am not in favor of cutting down trees to heat homes, they are needed to remove CO2 from the atmosphere and produce the O2 we need to exist. Kerosene or coal heaters would do the same producing CO2 for the trees and plants to bloom and O2 for humanity.
Perhaps you haven't heard how Brazil in the 1980s imported almost 100 percent of their crude oil, 1,000,000 bbls/day, but after their initial experiment in replacing gasoline with ethanol failed a massive exploration project, both onshore and offshore was undertaken so that today Brazil supplies 2,000,000 Bbls/day of their own oil to their refineries and has a reserve of over 9 billion Bbls and growing. The United States which has banned such projects actually has lent Brazil's Petrobras two Billion dollars to further their offshore exploration efforts. China is interested in acquiring drilling rights in the Gulf of Mexico and negotiating with Cuba to explore within 90 miles of Florida. Every country is searching for oil and even T.Boone Pickens has decided that wind power is not for him and he will stick to natural gas unless he happens to find oil too.
How do you propose to replace the petroleum products,other than gasoline, and petrochemical feed stocks that are are required for a significant if not major part of our business enterprises and military with electric power?
How do you propose to insulate electric power sources from EMP or cyber attacks and keep America running?
You may have missed the fact the my proposals did not ignore electric power as they include both nuclear, hydrocarbon and coal powered installations.
Regarding water usage , solar panels require an inordinate quantity of water and there are major fights over water rights of panels vs humans in the West today.
Comment
6 of 38
February 5, 2010
T.J. Buonomo is correct! Disbursed energy and water production are more secure. We need to buy American and use people who are here legally to install renewables and for energy efficiency retrofits and create jobs and a middle class...We need to have FAIR elections and therefore election reform to get the best people elected......We should have done this 35 years ago. We are in direct competition with lots of smart, hungry, chinese and others for fuels, metals etc which are all RUNNING OUT... Most fuels, metals...are in Russia and countries that don't like us. CLIMATE WIERDING is HAPPENING faster...Why does GM make high mpg Opals, and Honda used to make 55mpg non hybrid cars in USA and I can't get a non hybrid 50+mpg car in USA...? Lobbyists killing good ideas I think. Lets make it better.
Comment
7 of 38
February 5, 2010
Good article as well as enlightening comments. Any viable U.S. Energy policy for the next few decades must include a combination of:
1. Consumption, Conservation and energy efficiency
2. Fossil Fuels-Oil, natural gas and coal
3. Nuclear
4. Renewables-wind, solar, ocean, biofuels, etc.
Comment
8 of 38
February 5, 2010
Hi Patrick,
Yes, every country is indeed searching for oil. But at some point, we'll hit energy break-even. There might be plenty of oil deep, deep down -- but how much energy is it going to take to get it? If it takes a barrel of oil to find a barrel of oil, that doesn't make much sense. Oil has dropped from an EROI of 100:1 to 12-20:1.....

T. Boone Pickens gave up his wind project in the short-term because of the rocky financial markets, not because wind isn't viable. The tax equity market dried up and he couldn't find any partners to develop the new infrastructure. T. Boone stuck with natural gas because much of the infrastructure had already been built.

Replacing our vast array of petroleum-derived products is an enormous task. I think we'd all agree on that. But the innovation we're seeing in plant-derived bio-materials is promising -- you can make practically anything. I can't say I know what the energy intensity of such processes are, however....I'd be interested to know how it compares to petroleum.

In response to your solar panel comment -- solar PV uses water for manufacturing, but it doesn't even compare with the water needed to process coal or cool a coal-fired or nuclear power plant. Concentrating Solar Power -- large utility projects -- use a lot of water. And we definitely need to address that. But coal and nuclear are some of the biggest culprits today. Solar doesn't compare at the moment.
Comment
9 of 38
February 5, 2010
It will certainly take time to reduce our dependency on oil but the main thrust of my article was that our current energy situation is becoming increasingly untenable from a security standpoint and that public policy will determine the continuation or reversal of this trend.

The historical record makes clear that Western attempts to influence the internal affairs of oil-producing nations in the Middle East through subversive means has resulted in a serious backlash that began to flare up seriously in the 1950s in Iran and Iraq, culminating in the creation of OPEC as a defensive reaction against foreign coercion.

The secular nationalist movements of this era are currently being eclipsed by militant Islamist movements throughout the region as a result of the former's failure to alleviate socioeconomic stresses and accommodate demands for greater political representation.

While much of the blame for this rests with the repressive and corrupt elites of these countries, Western governments have in many cases been complicit in perpetuating their dictatorial powers. Their reasoning was that it is easier to maintain control over the resources of developing countries when the only vote that counts is that of the dependent dictator versus the politically empowered citizenry pressing for national self-determination.

As we increasingly diversify our energy resources, the temptation to engage in coercive national security policies in the Middle East and other oil-producing regions of the world will correspondingly decrease. This will naturally lead to a more balanced foreign policy approach to the Middle East in particular, resulting in an alleviation of hostilities. It will also spur increased economic diversification throughout the region, which is healthy not only from an economic but also a security standpoint. Balanced trade can promote harmonious relations but external dependency, especially concerning food, water and energy, has the opposite effect.
Comment
10 of 38
February 5, 2010
As TJ points out, the importance of oil to our community is obvious. What we really need is a concentrated effort to come up with a viable replacement for this energy ... Oh ya, Renewable Energy World.com. Its already been done! Darn! Keep up the good work guys!
Comment
11 of 38
February 6, 2010
The total of crude oil processed today in the USA is approximately 20,000,000 BBLs/DAY. Gasoline consumption in the US is approximately 9,000,000 BBLs or 378,000,000 USG per DAY and total transportation fuels is approximately 10,000,000 BBLs/DAY or 420,000,000 USG/DAY.
The operative word, however, is ENERGY, not volume, and the following illustrates the energy content of today's fuels.
Gasoline- BTU/USG- 114,194
Diesel- BTU/USG- 125,881
Ethanol- BTU/USG- 57,449
Hydrogen- BTU/USG 28,550
Natural Gas BTU/USG 140 as gas
Sources http://www.naftc.wvu.edu/technical/indepth/datatable.html
Methane=Natural gas 1030-1060 BTU/cf = 138 - 142 BTU/USG
1 gal (US) = 0.133 cf (cubic foot)
Source http://www.retailenergy.com/hybrid/Liquified%20Natural%20Gas.htm
If one multiplies the present 420,000,000 USG per day volume by an average energy content per USG of 120,000BTUs/USG the additional natural gas needed to replace just the gasoline and diesel fuel is in the order of tens of trillions of cubic feet on a yearly basis. No doubt this will require importing LNG to replace imported crude oil, a real Mexican standoff, and the building of LNG terminals which have been opposed by environmentalists and NIMBYs whenever and whereever such terminals have been proposed.
If one USG of gasoline provides sufficient energy, 114,184 BTUs, to power a vehicle 20 miles to provide the same energy it would require:
Diesel - O.91 USG
Ethanol- 1.99 USG
Hydrogen- 4.00 USG
Nat. Gas- 110 Cu Ft or 825 USG equivalent as gas
Natural gas would have to be compressed into a liquid, LNG, to make it usable in a vehicle which would require additional energy input to operate a compressor and a fuel tank in vehicles strong enough to contain LNG(liquified natural gas).
Comment
12 of 38
February 6, 2010
Continued
The electric power and bio-materials advocates can calculate the area of the USA that must be covered by wind turbines, solar panels and bio-producing materials to provide the Daily energy needs for only transportation energy never mind aviation/jet fuels and the energy needs for the rest of America's industrial bases' energy needs.
If America's security is threatened by Middle East oil why is no one shouting 'Drill baby Drill 'in America's onshore and offshore areas, including that pristine area known as ANWAR that no one visits for a vacation.
Why not since IPCC is being exposed as a scientifically corrupt organization,that demonization of CO2 as the only cause of climate change, nee global warming is a man-made construct by primarily government employees at NASA/NOAA and the CRU or academics such as Mann funded by government grants or non scientists as Al Gore and his propaganda film? It is time for every one to step back, catch their breath and start anew on developing a real energy policy free of world wide governmental agendas.
No image available
Comment
13 of 38
Anonymous
February 6, 2010
The author states: "while conspicuously neglecting to point out that the much more well-established fossil fuel industry received over $72 billion in federal subsidies from 2002-2008.

Federal subsidies to the wind and solar industries amounted to about one-sixth of this figure in the same time period based on the Environmental Law Institute's figures."

Any serious analyst would be more careful about the statistics that they quote. The ELI study is rife with major deficiencies and biases. Few rational people would consider government subsidies for heating fuel purchases by the poor to be a subsidy to the fossil fuel industry or would suggest that this has a benefit equal to direct cash payments such as the wind industry production tax credit, but ELI does both. The foreign tax credit prevents double taxation on any type of economic activity conducted abroad, but ELI considers it a subsidy to the fossil fuel industry. Even some government subsidies for roads were considered a subsidy to the fossil fuel industry. In short, the ELI report is a canard, and I am forced to wonder if the author even read it.

Furthermore, subsidies to the fossil fuel industry have a trivial effect on the market share of these energy sources but subsidies are the life blood of much of the nascent renewable energy industry. On balance, government market intervention provides a huge benefit for renewables. Instead of quibbling about which energy sources are getting the most subsidies it would be more interesting and useful to consider if the extant subsidies for renewables are being deployed to best effect.
Steven
Comment
14 of 38
February 6, 2010
"..America's long-term security ultimately requires intelligent public policy in support of a vibrant domestic market for renewable energy.."

The theory is that domestically produced fuel will prevent the economically disruptive influence of oscillating liquid fuel prices seen on the global market. Biofuels are not a fix for this because they rise in price along with oil (as economic theory predicted they would) and are in fact, even more volatile than oil because they are also impacted by crop failures. Witness Brazil's recent decrease in ethanol blend forced by high sugar prices. Biodiesel was selling for $6 a gallon in the summer of 2008 when regular diesel was $4.

Note that the author was careful not to use the term biofuel anywhere in his article. Was that a giant oversight? The military needs liquid fuel--diesel and kerosene--to fight wars, not solar and wind.

I will give the author more credit than that and suspect that he is using subconscious suggestion to promote Wesley Clark's (a very vocal supporter of corn ethanol and soy biodiesel) "need for energy independence hypothesis" as if it were an undisputed fact. I remember back in the day when the military advice was to escalate in Vietnam based on another unproven hypothesis called the domino effect.

Fifty thousand dead Americans later, we abandoned Vietnam to the commies, a few years later the Soviet Union disbanded, and today our biggest trading partner is communist China. It all turned out to be for nothing. The domino effect was just a hypothesis, yet we fought a war based on it. A bloody, horrifically expensive debacle with millions killed and maimed. Proof that governments can make very, very bad decisions, especially if it relies too heavily on military council.
Comment
15 of 38
February 6, 2010
To placate militarists and to prevent them from skewing rational energy policy with their understandably jingoistic world view, we could build a series of coal-to-liquid refineries based on South Africa's mature designs that would sit idle ready to go just in case we needed them in time of war. We could temporarily draw down on our vast coal reserves to make diesel and kerosene to fight a war like the Germans did in WWII.

Wars are supposed to be temporary. The fact that we have entered into an almost constant state of war is not a good sign. It suggests to me that the military industrial complex is winning.

Building these refineries would be expensive. It might be cheaper to simply buy oil off the world market in time of war, even if OPEC committed economic suicide and stopped selling.

I fully agree that we need to develop renewable energy. I just don't think the military should be participating in the debate. Wiser people than me have called the term military intelligence an oxymoron and that is not meant as an insult to the author.

We would try to stabilize the Middle East even if we bought no oil from there because our trading partners do. An economic meltdown for one trading partner affects all trading partners. Saudi Arabia and Kuwait were our allies in our last two wars (the oil kept flowing and they paid for over half of the cost of the Gulf war). World peace is good for everyone.

America can't retreat behind its borders.
Comment
16 of 38
February 6, 2010
Anonymous states in Comment 13:

"The ELI study is rife with major deficiencies and biases. Few rational people would consider government subsidies for heating fuel purchases by the poor to be a subsidy to the fossil fuel industry or would suggest that this has a benefit equal to direct cash payments such as the wind industry production tax credit, but ELI does both. The foreign tax credit prevents double taxation on any type of economic activity conducted abroad, but ELI considers it a subsidy to the fossil fuel industry. Even some government subsidies for roads were considered a subsidy to the fossil fuel industry."

Even after eliminating those three variables from the study (for purposes of brevity I will concede them), government subsidies to the fossil fuel industry would still approximately quadruple support for wind and solar.

Anonymous writes: "Furthermore, subsidies to the fossil fuel industry have a trivial effect on the market share of these energy sources...."

On the contrary, our nation's dangerous dependence on oil is in no small part due to the influence of public policy, which has been shaped by the lobbying activities of the industry and reflects its financial and political power.

Our public officials' support or denial of support for various technologies and industries has had a critical influence on the energy market; no less so their approach to foreign and national security policy.

In short, we need to convince the Hidden Hand that the national interest will best be served by the accelerated expansion of wind and solar energy markets. This is not an isolationist energy policy (why shouldn't we share the technology with OPEC nations?) nor does it imply or necessarily require complete energy independence. The critical points are: (1) we currently import 60% of our oil; (2) this level of dependency places us in a dangerously compromising position; and (3) public policy can and should be used to accelerate a reversal in a 60-year trajectory toward increasing economic, political and military insecurity.
No image available
Comment
17 of 38
Anonymous
February 7, 2010
Regarding the authors responses in comment 16:

The author claims that "government subsidies to the fossil fuel industry would still approximately quadruple support for wind and solar". One wonders how he calculates this value. My 3 criticisms of the ELI data for illustrations rather than a full listing; the ELI study is so biased that one cannot readily fix it. I also point out that the value of the production tax credit for wind is growing rapidly as that industry grows and a fair estimate of the value of this credit would include the future value of all guaranteed payments. This single correction would would dramatically shift the ratio of fossil to renewable subsidies.

The author remarks:
Anonymous writes: "Furthermore, subsidies to the fossil fuel industry have a trivial effect on the market share of these energy sources...."

On the contrary, our nation's dangerous dependence on oil is in no small part due to the influence of public policy, which has been shaped by the lobbying activities of the industry and reflects its financial and political power.

This is nonsense. If all fossil fuel subsidies went away tomorrow these energy sources would continue to dominate the market for decades because we still don't have affordable alternatives. The value of subsidies for fossil fuels is small compared to the industries profits, so removing them would not markedly change the playing field. In contrast, the value of subsides for the renewable markets is probably much larger than profits from that sector--remove those subsidies and the market for renewables would implode.

CONTINUED...
No image available
Comment
18 of 38
Anonymous
February 7, 2010
CONTINUATION of comment 17:

The author seems especially concerned with our dependence on oil. If I were to wave a magic wand and place as many wind turbines and solar PV cells onto the market as the grid could accommodate we would still import almost as much oil as before--oil is mainly used for transportation and electricity does not effectively compete with it for this purpose.

EVEN if we didn't need to import oil any longer (perhaps because I waved my magic wand a second time) oil would still be a corrupting influence on quite a few unstable and/or unfriendly governments. Thus, our security concerns would be mostly unchanged. The primary drivers for the recent squabbles in the middle east are cultural and religious differences rather than a direct response to our efforts to ensure stability of the oil supply. The author tends to oversimplify and/or conflate a great many complex factors and still manages to provide only a weak rationale for funding renewables. Of course, much stronger arguments exist....

Steven
Comment
19 of 38
February 7, 2010
Mr Lacey,
In response to my comment "Regarding water usage, solar panels require an inordinate quantity of water and there are major fights over water rights of panels vs. humans in the West today."
you wrote, apparently attempting to obfuscate the issue, "In response to your solar panel comment -- solar PV uses water for manufacturing, but it doesn't even compare with the water needed to process coal or cool a coal-fired or nuclear power plant." but then added "Concentrating Solar Power -- large utility projects -- use a lot of water." which was my point and based on the following:
Alternative Energy Projects Stumble on a Need for Water By TODD WOODY Published: September 29, 2009
"But then things got messy. The company revealed that its preferred method of cooling the power plants would consume 1.3 billion gallons of water a year, about 20 percent of this desert valley's available water."
http://www.nytimes.com/2009/09/30/business/energy-environment/30water.html?_r=1
Nuclear plants and coal fired power plants use water for cooling but recycle, not consume, the cooling water through cooling towers which do release clouds of water vapor to the air which environmentalists, Al Gore and the Media use over and over again as pictures of polluters and pollutants with the usual inference that it is CO2.
Accuracy and honesty is not always the policy of the AGW believers, aiders and abettors.
Comment
20 of 38
February 7, 2010
Mr.Finley,
"It might be cheaper to simply buy oil off the world market in time of war, even if OPEC committed economic suicide and stopped selling." is hardly the path to energy independence, more like a prescription to hamper defense efforts and exacerbate America's own economic problems since there are always buyers for oil. The OPEC countries' embargo of Europe and the US in the 1970s did little harm to their own economies but it certainly harmed ours.
Comment
21 of 38
February 7, 2010
Steven writes in Comment 17:

"The author claims that "government subsidies to the fossil fuel industry would still approximately quadruple support for wind and solar". One wonders how he calculates this value. My 3 criticisms of the ELI data for illustrations rather than a full listing; the ELI study is so biased that one cannot readily fix it."

I simply subtracted the 3 subsidy categories you listed as questionable and came up with a 1:4 ratio.

I won't debate the degree of bias in the study but I would point out, on the other hand, that it does not include military, intelligence, and Homeland Security expenditures related to the conflict formerly known as the Global War on Terror. Whether or not U.S. government officials will admit it, the pursuit of energy resources is inextricably tied up in this conflict, which can be traced back at least 6 decades to the covert operations of the 1950s. (It was around that time that the Arab-Muslim world began to view the U.S. with equal or greater hostility than the British empire.) Finally, there is no economic calculation of the cost in human lives and civil liberties.

Steven writes:

"If all fossil fuel subsidies went away tomorrow these energy sources would continue to dominate the market for decades because we still don't have affordable alternatives. The value of subsidies for fossil fuels is small compared to the industries profits, so removing them would not markedly change the playing field."

Agreed. We're behind the curve. You've made a good point in favor of reducing subsidies to the fossil fuel industry and increasing investment in R&D for renewables.
Comment
22 of 38
February 7, 2010
Steven writes in Comment 18:

"If I were to wave a magic wand and place as many wind turbines and solar PV cells onto the market as the grid could accommodate we would still import almost as much oil as before--oil is mainly used for transportation and electricity does not effectively compete with it for this purpose."

Electric vehicles powered by wind and solar would substantially reduce our oil consumption. Of course the transition would not happen overnight but it is very much within our reach technologically. The political will is the decisive variable.

Steven continues:

"EVEN if we didn't need to import oil any longer...oil would still be a corrupting influence on quite a few unstable and/or unfriendly governments. Thus, our security concerns would be mostly unchanged. The primary drivers for the recent squabbles in the middle east are cultural and religious differences rather than a direct response to our efforts to ensure stability of the oil supply."

Acknowledged- our reduction of oil imports would not necessarily change the behavior of Middle Eastern governments. However, their strategic importance to the U.S. would be somewhat reduced, allowing future administrations to engage in a more patient and considered foreign policy approach to this part of the world. This would in turn alleviate some of the hostility and suspicion many people in the region have for the U.S. as a result of our government's militarist approach to diplomacy in the Middle East.

I disagree with your assumption that the primary conflict drivers in the Mideast are culture and religion. Certainly these variables influence conflicts and can take on a life of their own but seldom if ever do they have an initial influence independent of economic variables. Repeated Western intervention in the region, motivated in large part by energy concerns, has contributed significantly to its socioeconomic retardation.
No image available
Comment
23 of 38
Anonymous
February 8, 2010
The author responds to one of my comments:
"If all fossil fuel subsidies went away tomorrow these energy sources
would continue to dominate the market for decades because we still don't
have affordable alternatives. The value of subsidies for fossil fuels is
small compared to the industries profits, so removing them would not
markedly change the playing field."
With:

"Agreed. We're behind the curve. You've made a good point in favor of reducing subsidies to the fossil fuel industry and increasing investment in R&D for renewables."

I fail to understand the enormous temptation felt by many to link increased subsides for renewables to reductions for fossil fuels subsidies. Virtually all of the "subsidies" (as the author and the ELI define them) for fossil fuels improve our national security interests. Does the author really want to eliminate the strategic petroleum reserve, which the ELI rates as a 6.2 Billion dollar subsidy? Does he want to stop exploration into nonconventional fossil fuel sources and leave us even more reliant on oil imports? Does he want to cut funding for home heating subsidies for the poor? Or change the tax code so that energy companies are subject to double taxation that no other industry is subject to? There aren't any other big ticket items in the ELI list once you eliminate these....

Those seeking financial support for the renewable energy industry would be far more effective if they concentrated on the merits of the what they want funded rather than carping about the modest funds given to others for what many people would regard as worthy efforts.
Steven
Comment
24 of 38
February 8, 2010
I'm all for massive funding of research and development. Although the development can mean thirty years of massive subsidization and even billions of gallons of annual mandatory consumption in the case of corn ethanol.

I did not mean to imply that we should not pull out the stops to develop truly renewable energy sources. That should be done for many reasons.

Patrick,

The OPEC embargoes were a quarter century ago. It isn't the same world. Look at China. We are all much more economically interdependent.

Saudi Arabia is a gasoline importer. Saudi Arabia and Kuwait were our allies in the Gulf war, paying for over half of it.

Even if we could afford to develop our own sources of liquid fuel, we could not afford to let the Middle East collapse in an orgy of religious extremism and jihad because that would lead to a global depression that would make the existing recession look tame.

Oil independence would not reduce our military costs. We would still need to maintain a military presence.

We have technology that could replace oil imports. What we don't have is technology that costs less. It is all about cost.

By far the most cost effective technology we have is improved efficiency. Hell, government sponsored billboards poking fun at SUV drivers and promoting Hybrids wrapped in flags would do more good than anything we have attempted so far.
Comment
25 of 38
February 8, 2010
Steven remarks in Comment 23:

"Does the author really want to eliminate the strategic petroleum reserve, which the ELI rates as a 6.2 Billion dollar subsidy? Does he want to stop exploration into nonconventional fossil fuel sources and leave us even more reliant on oil imports? Does he want to cut funding for home heating subsidies for the poor? Or change the tax code so that energy companies are subject to double taxation that no other industry is subject to? There aren't any other big ticket items in the ELI list once you eliminate these....

Those seeking financial support for the renewable energy industry would be far more effective if they concentrated on the merits of the what they want funded rather than carping about the modest funds given to others for what many people would regard as worthy efforts."

CQ reported in May 2009 that the oil and gas industry spent $37.3 million to lobby the federal government in the first quarter of last year. In contrast, it reported that the solar industry spent $642,500 and wind companies allocated $1.4 million in the same quarter. ConocoPhillips alone spent
$6 million during that time period.

(http://www.cqpolitics.com/wmspage.cfm?docID=news-000003120026)

If ConocoPhillips can afford to spend $6 million in one quarter on lobbying to perpetuate the oil industry's dominant position in the market it seems apparent that they do not need the subsidies they are receiving and that these subsidies are actually contributing to the problem rather than serving the national interest.

ELI could perhaps have done a better job of selecting what subsidies to include in its study but the case for reducing subsidies to a mature and very capable group of market players stands. A substantial amount of those taxpayer dollars should be re-allocated to the improvement of technologies and expansion of markets which are strengthening our national security rather than keeping us on a negative security trajectory.
No image available
Comment
26 of 38
Anonymous
February 9, 2010
TJ:
It is rather easy and a bit disingenuous to moralize against the nebulous bugaboo of "fossil fuel subsidies" without ever pointing out which ones specifically you would repeal. The truth is that these subsidies are fewer than is widely perceived and often beneficial. Subsidies are typically inducements for companies to do things that are believed to be in the national interest but which would not ordinarily be in a company's financial interest. Surely you can name at least one big ticket subsidy from the ELI list (or any other list) that you would not be in favor of.... Do you want to turn off the heat in the middle of winter on some poor old people? Or shut down the strategic petroleum reserve? Or shut down exploration of unconventional fuels? I agree completely that the industry does not NEED the subsidies they receive, but we need many of the things that they will only undertake if we make it worth their while. A professional analyst should be able to make hard choices, so just name a couple of these subsidies that you would repeal ....

You mention that the fossil fuel industry spends significant sums on lobbying. The tone of your last remarks almost seems to suggest that some sort of corruption is involved in so doing. Is that really what you intended to imply? Even if the fossil fuel industry was motivated purely by saintly virtues they might well be justified in discouraging the governments tendency to try to micromanage their industry. Probably the industry is instead motived by a healthy self interest to lobby to influence the actions of the government. This only seems fair to me; the government is continually trying to influence their actions by shifting the playing field, and one of the most effective methods for doing this is subsidies.
Steven
Comment
27 of 38
February 9, 2010
First of all, this is an excellent debate and an extremely important topic. Thank you to everyone who has spent time researching and writing their opinions.

I want to recommend to everyone the book "Turning Oil into Salt" by Gai Luft and Anne Korin. They explain that salt was once a strategic commodity, before canning and refrigeration made it just another commodity. They argue that we must do the same to oil by developing transportation fuel alternatives. We need substitute commodities that will allow the US to remove OPEC's monopoly pricing power. Biodiesel, ethanol varieties, methanol, electric vehicles, battery technology, can each contribute. They don't advocate for any particular technology. They only argue that we should encourage every alternative with vigorous support.

The author's organizations are the Set America Free Coalition and the Institute for the Analysis of Global Security. I highly recommend their book to those interested in this topic and I remain hopeful that their arguments can influence this important debate.

Ken Stadlin
Comment
28 of 38
February 9, 2010
"They argue that we must do the same to oil by developing transportation fuel alternatives. We need substitute commodities that will allow the US to remove OPEC's monopoly pricing power."

Well look up the very long to load video on hereby attached link to understand that there is a way out of oil for transportation. Very interesting video.

http://www.treehugger.com/files/2010/02/is-the-chevy-volt-right-for-you.php?campaign=weekly_nl

Concerning the other uses of oil, well soap, grease etc can be made from vegetable sourced oil (did such a project myself, converting coconut oil into Betaine, who then got mixed with water and colorants to become household shampoo).

Packaging can easily be replaced by glass or paper or metal cans. We didn't need plastic in the past to store our food. Milk got into glass bottles, meat in paper, and cereals into metal cans that ALL were 100% endlessly recyclable.
Comment
29 of 38
February 9, 2010
sorry, wrong link. Hereunder the correct link :

http://www.treehugger.com/files/2010/02/how-world-filled-plug-in-hybrids-work-video.php?campaign=th_rss_cars?campaign=TH_sbr_cars

How would a society filled with plug-in electric cars work? Even if you follow the hybrid car industry avidly, this video is a great summation of what an electric-car filled world might look like--and what else we're going to need to get them to be a full fledged alternative to conventional cars.
Comment
30 of 38
February 9, 2010
All big companies try to manipulate politicians for profit. I'm not defending big oil. I'm just shining some light on the issue.

Divide subsidies for corn ethanol and (real subsidies) for oil by units of energy supplied. You will find that the subsidies for corn ethanol dwarf those for oil.

Likewise, divide lobby funds by units of energy produced. Oil companies bother to lobby because it brings a healthy return on investment.

Corn ethanol is an example of what can happen when you let government pick the winners for us. It was chosen because it bought votes from the corn states where the early primaries are held, not because it was the best strategic option. It is more expensive and environmentally destructive than what is is meant to replace.

It also can't scale, which is why a limit was put on how much can get subsidized. Given the economic incentive the ethanol industry would use all of our arable land for corn ethanol, and even that would only replace about 10% of our oil use.

Again, I'm not defending oil subsidies (real ones). The oil companies don't need subsidies. The system is broke. Our government subsidizes one energy source and also its competitors because each congressman is out to buy votes from his state. The overall good of the country takes second fiddle.
No image available
Comment
31 of 38
Anonymous
February 9, 2010
Micro Concentrated Solar Power from Sopogy - a green energy seminar
http://www.youtube.com/watch?v=OupOfCWUw54
No image available
Comment
32 of 38
Anonymous
February 9, 2010
Micro Concentrated Solar Power from Sopogy - a green energy seminar
http://www.youtube.com/watch?v=OupOfCWUw54
Comment
33 of 38
February 9, 2010
Steven,

In Comment 26 you wrote:

"It is rather easy and a bit disingenuous to moralize against the nebulous bugaboo of "fossil fuel subsidies" without ever pointing out which ones specifically you would repeal.... Surely you can name at least one big ticket subsidy from the ELI list (or any other list) that you would not be in favor of.... A professional analyst should be able to make hard choices, so just name a couple of these subsidies that you would repeal ...."

I'll direct you to a Fall 2008 Mother Jones article titled "How to Fix It: Stop Leasing Public Lands at Fire-Sale Prices":

http://www.motherjones.com/politics/2008/09/how-fix-it-stop-leasing-public-lands-fire-sale-prices

(From the article): With oil prices topping $140 a barrel this summer, the Interior Department's leasing program, run by its Minerals Management Service (MMS), stood to lose as much as $53 billion over 25 years from deep-water leases in the Gulf of Mexico alone, according to the Government Accountability Office. One of the officials responsible for signing some of the most ill-conceived leases with the oil companies left the department last year and promptly registered as a lobbyist for Shell. (He joined former Interior Secretary Gale Norton, who in late 2006 was hired by the oil company.)"

Please see also: http://motherjones.com/mojo/2008/09/exclusive-more-interior-departments-sex-and-oil-scandal

You (Steven) continue: "You mention that the fossil fuel industry spends significant sums on lobbying. The tone of your last remarks almost seems to suggest that some sort of corruption is involved in so doing. Is that really what you intended to imply?"

The close relationships between the oil industry and government officials may not necessarily constitute corruption but the influence of the former over the latter, through direct lobbying and public disinformation campaigns, perpetuates our nation's dependence.

Continued....
Comment
34 of 38
February 9, 2010
The ELI study describes royalty relief for offshore leases as a subsidy. The Mother Jones articles I cite above detail unofficial royalty relief for onshore leases. I would favor a reduction in both, through legislative, regulatory, and stricter oversight measures.

The focus of my article was on federal and state support to the renewable energy industry rather than a reduction of support to the fossil fuel industry per se. However, there are certainly subsidies which could and should be reduced. Undoubtedly the industries affected would attempt to pass off the cost onto consumers but a well-planned public information campaign placing the responsibility for this squarely on the private interests involved would help generate even greater public demand for energy independence.
Comment
35 of 38
February 12, 2010
Although this theme of our "dangerous dependence" on oil and the associated "national security" risks is repeated often and loudly, it has yet to rise to the status of fact. I say this because these assertions are never accompanied by detailed, factual, supporting evidence. Never. No citations of research papers, books, or other references can be found in any of the writings of this type that I encounter.
They are rife with vague terms, such as "militants" or "radicals" which threaten our lifeblood.
Nobody tells us which militants or radicals in what country threaten which oil fields, or pipelines, or shipping terminals and how many barrels per day they can take off line for how long. Until that happens and the information can be independently verified, these claims lie in the land of propaganda and fear mongering.
Mr. Buonomo, your credentials are impressive, but they do not excuse you from backing up your assertions with supporting evidence, so that your audience may judge for themselves the veracity of your statements. Just because you say it's so, doesn't make it so.
There are many facts about energy that we can debate and discuss, and certainly there are good factual reasons for diversifying our energy resources. But lets stick to facts.
Comment
36 of 38
February 12, 2010
Jim,

Here are two unclassified sources:

http://www.iags.org/iraqpipelinewatch.htm

http://www.globalsecurity.org/military/world/para/al-qaida-arabia.htm

Not every pipeline bombing is necessarily conducted by Islamist terrorists of course, but the Saudi oil facility attacks are. The Iraq pipeline attacks are conducted by a combination of Islamists, Ba'athists, Iraqi nationalists opposed to foreign control of their country's oil assets, sectarian opponents of the current Iraqi government, etc.

My article was not focused singularly on terrorist or militant groups however. These are only symptoms of a more fundamental problem, which is the history of Western interventionist policies in the Middle East, motivated in large part by the desire and need for access to oil resources. The 20th century British empire owns much of the blame for this but after WWII the United States began to play an increasingly active role in this region, provoking a great deal of distrust and hostility as a result of its coercive policies.

If you would like further depth and context on this subject I invite you to review my blog, Citizens for a Sovereign and Democratic Iraq, where you can find additional sources of scholarly information:

http://sovereigniraq.wordpress.com/resources/
Comment
37 of 38
February 13, 2010
Mr. Buonomo, regardless of my thoughts on your article, my post was overly harsh. Please accept my apologies. Thanks for the references, I'm looking forward to digging into them.
Comment
38 of 38
February 13, 2010
No apology necessary. I should have included references in the article.
Add Your Comment

Registered users, please make sure to Sign-In. We and others want to know your ideas and opinions. If you are not yet Registered -- it's quick and easy. Just click below.
Thanks!

Register Now   Sign-In

Advertise With Us

Prudent Living, Inc. Johnson Controls, Inc. National Hydropower Association The Switch Texas Solar Energy Society AllEarth Renewables Solar Network International
World's #1 Renewable Energy Network
PennWell
Renewable Energy World Magazine North America Renewable Energy World Magazine International Renewable Energy World Conference & Expo North America Renewable Energy World Conference & Expo Europe Renewable Energy World Conference & Expo Asia Renewable Energy World Conference & Expo India Renewable Energy World Conference & Expo Africa
RenewableEnergyWorld.com Photovoltaics World Magazine Solar Power Gen Conference & Expo Hydro Review Magazine Hydro Review World Magazine
HydroVision International HydroVision Brazil HydroVision India HydroVision Russia
Twitter Facebook Linked In RSS Feeds e-Newsletters